Some artisans or professional craftspeople are afraid or resistance to wholesaling your products. Many artisans are concerned they can’t measure up, or that they cannot handle the increase in business. Others have not allowed enough margin in their retail pricing to wholesale. And others just don’t understand the benefits to wholesaling.
- Instead of selling one or two, you can easily sell to stores in 6, 12 or 24s — whatever you determine for your case lot amounts.
- Once you set up a wholesale account, you can receive multiple orders per year rather than the one-time orders typical at retail shows.
- Often, you can create a sample(s), take it to a trade show or directly to a buyer and take orders ONLY for the item that you have sold.
- You have a constant source of income from wholesaling, which is more predictable than retailing.
- As a business, you can take advantage of economic of scales — meaning you can buy your raw materials at a lower price when you order dozens rather than in ones or twos. And, if you haven’t already done so, you can create accounts with your suppliers and buy on credit (to pay when you get paid) and save sales tax!
Wholesaling may not be for every artisan or professional crafter, but most of the time, the reasons for NOT wholesaling are based on misconceptions.
Some of the biggest reasons for not wanting to wholesale (that I have heard) and the truth of the statement are listed below:
You don’t make as much money wholesaling because you are charging half of the price for the item.
That would be true if you were only wholesaling one or two items, but when you are selling case lots, your profits will increase with less time spend on selling and creating. Also, it is often easier and more time efficient to make duplicates of an item than creating just one or two.
You won’t be able to produce as fast or as many as a retailer would order because your company consists of just you.
Once you start working with buyers, you have two options to deal with this issue: 1. You can promise the products to be delivered/shipped in 4-6 weeks (or whatever time frame you need) or 2. You can hire someone to help — which you will now be able to do with the extra income you will make with wholesaling.
You won’t be able to attend any more retail shows because you will be too busy with wholesale orders.
Another falsehood! With wholesale orders, you will have a time frame and a production schedule. Knowing when and where your time will be allocated, will actually give you MORE time to spend on shows. Also, retail shows are a great venue to test market a new creation.
For more ideas on why you should wholesale, check out the Arts Business Institutes article: Why Wholesaling Works